Chandigarh proposal for land-allotment policy rejected by MHA

Chandigarh proposal for land-allotment policy rejected by MHA
02/08/2017 , by , in News/Views

The Union ministry of Home Affairs (MHA) has rejected a policy proposed by the Chandigarh administration for auctioning residential and commercial plots, and allotting land to the Centre and the state governments of Punjab and Haryana.

According to sources, the MHA’s rejection has come because the UT, while framing policy, had deviated from the ministry’s directions to not dispose of land at below-market rates. In 2012, the MHA had taken cognizance of the administration “disposing of land at below-market rates and without holding an auction”, and issued the directions to it to frame a policy and submit it to for approval.

After the directions from the MHA, the administration had put on hold all land allotments for the past six years. For resuming the allotments, it had sent this proposal to the MHA. However, instead of following these directions, the administration, in the proposal submitted to the MHA, relaxed land allotment rates for government bodies and sought to auction residential and commercial sites at a reserve price equal to collector rates.

The issue was also discussed in the recently held home minister’s advisory committee. In the proposal, the administration had proposed that land for residential purposes be allotted to the central government, and governments of Punjab and Haryana, at a reserve price of 50% of the collector rate of plots.

In case of land for commercial purpose to wholly owned public sector units (PSUs), boards and corporations of central government and governments of Punjab and Haryana, including Chandigarh Industrial and Tourism Development Corporation (Citco), the administration had fixed 50% of collector rates of commercial property in the vicinity as allotment rate.

The reserve price had been set at 75% of the collector rate of residential property in the vicinity for allotment of institutional land to wholly-owned public sector units, boards and corporations of non-commercial nature of central government and the state governments of Punjab and Haryana. The administration will not be able to allot\auction land below market rates. Chandigarh being a city that is short of land, the price of land is high.

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